Europa Oil & Gas (EOG) : Corp

Wressled!

Key data

  • Share price (p) 2.9
  • Target price (p) 32.0
  • Market cap (£m) 12.9
  • Enterprise value (£m) 10.0

After a highly protracted process, Europa’s Wressle oil field development has finally been granted planning consent. This paves the way for the field to be brought into production this year, delivering much needed cash flow to help Europa fund its 2020 work programme.

Jonathan Wright 020 7220 0543 jwright@finncap.com

President Energy (PPC) : Corp

Strengthening the balance sheet

Key data

  • Share price (p) 4.0
  • Target price (p) 10.0
  • Market cap (£m) 49.1
  • Enterprise value (£m) 65.4

President has announced a share subscription and debt for equity swap that will see commodities trader, Trafigura, become a significant shareholder in the company. Combined, this will reduce President’s ~$32m debt by ~US$6m initially and up to ~US$15m if additional subscription and debt for equity conversion options are taken up. This not only materially strengthens President’s balance sheet, providing greater organic and inorganic investment flexibility, but further verifies the quality and value of its asset base. Trafigura is the second industry participant to recently recognise President’s investment appeal, with the shares trading at almost a 60% discount to NAV and 3.6x 2021 EV/EBITDA.

Jonathan Wright 020 7220 0543 jwright@finncap.com

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